Costco and American Express are offering a $25 bonus in the form of a statement credit for new customers who make their first purchase using their TrueEarnings® Card.

The TrueEarnings® Card from Costco and American Express also offers significant cash back awards on most purchases, including 3% on gasoline and restaurants, 2% for travel, and 1% everywhere else. This cash back is unlimited, so you don’t have to worry about an annual cap. You’ll even earn cash back when shopping at Costco, which from what I understand already has low prices.

There is no annual fee for current members of Costco, but that’s the catch. You have to be a member of Costco to be approved for this card.

Also consider the equivalent card for businesses, the TrueEarnings® Business Card from Costco and American Express. This is a very similar card, but it does not offer the $25 statement credit with your first purchase. This card does, however, offer 5% cash back on gasoline rather than 3%. Therefore, if you plan on spending more than $1,250 on gas and if you don’t need $25 right away, the business card may be the better choice.

Kiva is an international non-profit organization that facilitates “microlending” for the purpose of its mission, alleviating poverty across the world. The organization allows those who wish to contribute to lend money in small amounts to entrepreneurs in the developing world. Kiva’s website lets you browse entrepreneurs’ profiles to select the recipient of your micro-loan and allows you to make that loan. The terms of the loan are generally 6 to 12 months. Kiva claims that repayment rates are 99.7%, so there is very little risk of default.

Even with the potential for earning interest as a lender, I’d be careful about including microlending as an important part of an investment portfolio. It might be best to lend money only with amounts you don’t mind losing. Despite success stories—Endless Gibberish is “addicted” to Kiva and has lent over $20,000—there is always a risk.

For anyone who finds Kiva to be a valuable resource, the Kiva BusinessCard, a credit card offered by Advanta, is an excellent choice. This is the only credit card I’ve encountered that is geared towards philanthropy. The Kiva BusinessCard matches your Kiva contribution (when placed on the credit card) dollar for dollar, up to $200 each month. Your contribution has twice the power. This match is considered a grant, however, and not part of your microloan. When the loan is repaid, you will only receive the amount of your contribution, not including the match. The matching portion will be paid back to Advanta.

Additionally, the card offers an 5% cash back rebate in the form of a statement credit for grants to Kiva, charitable donations, and some expense categories, up to $1,200 in charges to the card. Beyond that $1,200 limit, and in other expense categories, the program offers a cash back rebate of up to 1% on all other purchases. The total cash back you receive is unlimited. The cash back incentive for charitable donations is an excellent idea; to loan $100 to Kiva or donate $100 to your favorite non-profit, it will only cost you $95 (after you receive your credit).

That same $95 you spent on a $100 microloan provides the recipient with $200, thanks to Advanta’s matching grant.

Like other business credit cards, you don’t have to be a business in order to apply and be approved for this credit card.

The Federal Reserve Bank issued a proposal this past May to:

prohibit unfair practices regarding credit cards and overdraft services that would, among other provisions, protect consumers from unexpected increases in the rate charged on pre-existing credit card balances

For a limited time, you can add your opinion to this proposal (scroll down and click “Submit Comment” below Regulation AA). You can also look through the existing comments — all 10,000 of them — if you’re feeling bored.

Every week, cash back credit card deals are decreasing. American Express recently emailed me to let me know that they have lowered the cash back rate on their SimplyCash Business Card from 5% to 3% on gas station purchases. If this is your card, it might be time to seek out another deal.

Here are a few suggestions designed to maximize your cash back based on your spending habits.

Blue Cash from American Express.

If you use credit cards for most of your spending, you might like this card. While the first yearly $6,500 of your spending is subject to only 1% cash back on “everyday” purchases (including purchases at gas stations, supermarkets, and drug stores) and 0.5% cash back on everything else, once you pass that threshold, you will earn 5% cash back on your “everyday” purchases and 1.5% cash back on everything else.

Discover Open Road Card.

If you’re not a heavy spender on your credit cards but you’re still looking for the best deal, the Discover Open Road Card may be a good choice. You will earn 5% cash back of the first $100 you spend each month on gas and auto maintenance. In other categories, you will earn 0.25% or 0.50% cash back. Spend more than $3,000 over the entire year and you’ll earn 1% cash back on your spending in excess of this minimum.

TrueEarnings Card from Costco and American Express.

Even if you don’t shop at Costco, this card provides a good cash back bonus. You can earn 3% back on gas, as long as you don’t buy 75 gallons or more in one transaction. There’s no yearly limit to this cash back, however. The catch here, as you might have guessed, is that you must be a member of Costco in order to qualify for this card.

Note: This is a “business” card, but you can apply as an individual.

Chase BP Visa Rewards Card.

If you’re loyal to these brands of gasoline, this card provides a strong 5% cash back rebate for your purchases at BP or Amoco stations. You’ll also receive a 2% cash back rebate in other categories and 1% cash back on everything else (except gasoline sold at gas stations branded with anything other than BP or Amoco). BP has low prices on the path of my commute, but usually not the lowest. The question is whether the larger cash back amount will offset the slightly higher price.

As with any rewards-offering credit cards, taking advantage of cash back depends on your ability not to carry a balance, accrue interest, or pay late fees. Any method of using a rewards credit card other than paying the balance in full every month will negate any benefit offered by the issuer.

If you plan on spending at least $750 to pay your everyday expenses in the near future, you may want to consider this offer. The Citi Platinum Select AAdvantage® World MasterCard is offering 25,000 bonus miles to new cardholders who spend $750 within the first four months of membership.

25,000 bonus miles can presently be redeemed for tickets for American Airlines flights worth as much as $400 or possibly even more. Most economy fares throughout the United States are available for 25,000, although the dates and flight times may be somewhat restricted.

Still, if you know you have to spend the $750 anyway, and you’re responsible with credit card usage—purchasing only what you would otherwise, paying our balances in full, and never paying interest fees or late charges—this offer might be worthwhile.

After one year, Citi will charge an annual fee for holding this card. You may want to consider canceling the card before the fee is assessed, as long as you are not concerned with the effect doing so might have on your credit score. Canceling a card is said to temporarily lower your credit score, so you’ll have to plan your strategy carefully if you intend on needing the highest possible score at the time you cancel.

In order to qualify for this deal, you must apply for the World MasterCard before June 30, 2008.

CNN Money is taking a hard stance against credit card reward programs. Citing a study released yesterday by Consumer Reports, which I have not yet seen online, rewards cards entice customers to spend more than with regular credit cards. Additionally, the restrictions common with many cards make the rewards less valuable than they appear.

The article mentions the fact that reward credit cards often have higher interest rates. Interest rates should not be a consideration. If you carry a balance on your credit card from month to month, it is very unlikely that any rewards program will be beneficial. You’ll pay your rewards right back to the credit card company in the form of interest payments, or worse, in the form of late fees.

My cash back benefits seem to be decreasing despite my continued use. On my American Express Blue Cash for Business card, I’m only earning 0.5% because I haven’t reached a certain threshold of spending. My Citi Dividend World Mastercard is faring better, though I don’t have a good idea if I am earning all the cash back I am supposed to be earning according to the card’s terms.

Are you satisfied with your credit card reward program?

Credit card rewards are a real rip off [CNN Money]

Last June, I noticed that a few gas stations in my area were charging different prices for gas depending on whether your method of payment was cash or credit. My biggest problem was that this wasn’t advertised on the large signs attracting drivers to the station. The station later changed its signs, though the cash price appears in the spot where one would normally see the “regular unleaded” price, and the credit price appears where one would expect the “plus unleaded” price. The labels “cash” and “credit” are only legible up close.

This “cash discount” is a joke. The cash price is the competitive price relative to other local stations and the credit price has increased more significantly. This is just a sneaky way of getting around Visa’s and MasterCard’s requirements for merchants not to charge more for customers who use credit cards. I am aware the credit card companies charge transaction fees that can cripple gas station owners who make very thin profits on gasoline, but this is not the answer, particularly if they must run misleading advertising to compete with other stations.

The price discrimination first occurred shortly before I moved to a new town, so I didn’t have to deal with it at that time. Once I moved, I found a local, low-price gas station on my daily route that did not offer a “cash discount.”

Last night, I pulled into my low-cost station on the way home from the office, just like I have been doing several times a week for the past 11 months. As pumping our own gasoline is against the law in New Jersey, I asked the attended to fill up the tank. It wasn’t until the tank was almost full that I glanced at the sign on top of the pump to see how high the prices increased over the weekend. I noticed there were two sets of prices, one for cash and one for credit.

Curses, foiled again. Some time in the past few days the owners of this Raceway gas station decided to offer a “cash discount” as well, just like the Valero station near my old apartment. The large sign attracting drivers to the station had been changed to list cash price first, followed by credit price in the “plus unleaded” location, with small labels reading “cash” and “credit.”

The price difference between cash and credit was ten cents. I’m considering opening up a CitiBank Driver’s Edge credit card, like this one for students, currently offering a 6% cash back rebate on gasoline purchases. That rebate would make up the ten cent difference and more, but I’d rather not open more credit cards.

I’d also rather not carry around cash for fueling my car, considering it cost almost $40 to fill up last night. I would save $2.00 to $3.00 a week by paying with cash. All other gas stations are either more expensive or out of the way. Perhaps I’ll try cash for a while, but I’ll have to get used to withdrawing about $100 more than I usually do each week. If I adapt, I’ll have perhaps an extra $150 saved after one year.

A recent article on CNN Money described the woes of independent gas station owners. The increasing cost of a gallon of gasoline results in less profit thanks to the processing fees credit card companies charge the merchants. I can appreciate that doing business in this type of environment is tough.

With gas prices soaring to a national average of $3.76 Wednesday, according to motorist group AAA, those credit card fees add up to an average of 7.5 cents per gallon – taking away nearly 83% of gas stations’ fuel profits.

Most gas stations earn their bigger profits on items purchased in the attached convenience store and mechanic services. Gasoline is a loss leader. Everyone needs it, and many gas stations are willing to take even a slight loss on gas as long as they continue to make profits elsewhere.

The credit card companies don’t accept the blame. For example, Visa says the processing fee they charge their gas stations is set by the large oil companies.

The Electronic Payment Coalition (EPC), a group representing credit card networks and financial services organizations, said it’s impractical for card companies to negotiate with every single gas retailer. So, it said, gas station owners should put pressure on their parent oil companies to negotiate a better fee.

To compete, some gas stations are charging customers who use a credit card more than a customers who use cash. Apparently, they’ve found a way to avoid breaking the credit card companies’ rules by calling this a “cash discount” rather than a “credit premium.”

I don’t know what the real difference is, and the only effect it’s had on me is switching to another gas station. The main problem is when gas stations advertise their cash price without disclosing (until the nozzle is in your car) that you will be paying more if you use a credit card.

To help solve some of these problems, both for the consumer and the independent gas station owner, Congress is suggesting fixing the maximum rate that credit card companies can charge merchants to accept their cards through a bipartisan bill in the House, called the Credit Card Fair Fee Act. Congress will set up a committee who will define what rates the credit card companies can charge merchants.

Will this solve the problem or is it unnecessary meddling in a free(ish) market economy?